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Profit Sharing Plan

A Profit Sharing Plan is a retirement plan in which the contributions are made solely by the employer. The business owner has the flexibility to contribute and deduct between 0% and 25% of eligible participant's compensation up to a maximum each year. Several allocation methods are available:
Plan Eligibility

Vesting
Vesting is the participant's ownership in the value of his/her retirement account or benefit. The vesting schedule elected by the employer applies to all participants.

 Tax Advantages

Plan Deadline
The deadline to establish a profit sharing plan is the last day of the fiscal year of the business. For calendar year businesses, this deadline is December 31st.

Contribution Flexibility
No annual contribution is required

 


Last Updated: 9/23/2012 10:05:00 PM